Maximize Your Tax Savings

Maximize Your Tax Savings

Are you satisfied with your current tax savings?

Many employers find themselves spending time and resources administering Section 125 Plans without seeing the tax savings they hoped for. Reimbursements accounts, such as Health Care Flexible Spending Accounts (HCFSAs) and Health Savings Accounts (HSAs) can often be even more confusing.

When employees don’t understand how pre-taxed benefits work, they are less likely to select them during their annual enrollment. This confusion and lack of knowledge typically leads to less overall participation, and as a result, fewer tax savings for both you and your employees.

We’ve found that participation can often be improved with increased education. Implementing a comprehensive education plan helps give employees confidence in their choices, ultimately increasing participation and tax savings for both them and you.

Employers, on average, save $115 per participant in a Section 125 Plan on FICA alone.1

Employee Education is Key

Benefits are confusing. Especially when it comes to understanding the differences between reimbursement accounts and choosing the right benefits, employees need help.

When employees understand their benefits, they will be more satisfied in their selection and are more likely to keep the coverage year after year. Additionally, employers are more likely to retain employees who understand the relative value of their benefits package.3

Our strategy is not only to communicate during enrollment, but before, during, and after. With the help of videos, custom benefits sites, and other educational resources, we can meet the needs of employees with different learning styles.